Stock Market Update

The stock market is on track for a modestly lower open on the heels of yesterday's slide that saw tech and mega-cap names pace losses for a relatively broad market retreat. 

An 8% slide in Palantir Technologies (PLTR 187.20, -3.50, -1.8%) after a stellar beat-and-raise earnings report was the tell that investors were becoming leery of the market's stretched valuations and thin mega-cap leadership. 

Most of the mega-caps are down again in the pre-market this morning, though the losses are more modest in comparison to yesterday's. 

The market is receiving another large slate of earnings reports, with several high-profile names in the mix. Advanced Micro Devices (AMD 243.00, -7.05, -2.7%) trades lower despite topping estimates and guiding Q4 revenues above consensus. 

Investors will also have some data releases to asses this morning, including the October ADP Employment Change Report.

Headlines are relatively quiet elsewhere, though the Supreme Court is set to hear the case on President Trump's tariff authority today. 

In corporate news:

• China bans foreign artificial intelligence chips from data centers with state funding, according to Reuters. 
• Advanced Micro Devices (AMD 243.00, -7.05, -2.7%) beat EPS expectations by $0.03, beat revenue expectations, and guided Q4 revenues above consensus.
• McDonald's (MCD 301.50, +2.29, +0.8%) missed EPS estimates by $0.11, reported revenues in-line, and saw global comparable sales increase 3.6%, while U.S. comparable sales increased 2.4%.
• Tesla's (TSLA 449.58, +5.32, +1.2%) Germany car sales fell 50% in October, according to Reuters. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note while markets in India were closed for a holiday. Japan's Nikkei: -2.5%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.2%, India's Sensex: HOLIDAY, South Korea's Kospi: -2.9%, Australia's ASX All Ordinaries: -0.3%.

In news:

• South Korea's Kospi (-2.9%) deepened its reversal from a record high and was down about 6.0% before narrowing its loss by the close.
• Japan's Nikkei (-2.5%) also deepened its reversal from record territory while Nintendo bucked the trend after strong quarterly results.

In economic data:

• China's October RatingDog Services PMI 52.6 (expected 52.5; last 52.9)
• Japan's October Monetary Base -7.9% yr/yr (expected -4.8%; last -6.1%)
• Hong Kong's October Manufacturing PMI 51.2 (last 50.4)
• Singapore's September Retail Sales -1.4% m/m (last 0.7%); 2.8% yr/yr (last 5.3%)

Major European indices trade mostly lower. STOXX Europe 600: -0.2%, Germany's DAX: -0.4%, U.K.'s FTSE 100: +0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.4%.

In news:

• The Times shadow Monetary Policy Committee voted 5-4 in favor of the Bank of England keeping its bank rate at 4.00% ahead of tomorrow's official decision.
• The European Central Bank's wage tracker forecast a 2.2% increase in Q3 wages after a 1.8% increase in Q2.
• European Central Bank policymakers Nagel and Villeroy de Galhau cautioned against complacency on the part of policymakers.

In economic data:

• Eurozone's October Services PMI 53.0 (expected 52.6; last 51.3). September PPI -0.1% m/m (expected 0.0%; last -0.4%); -0.2% yr/yr, as expected (last -0.6%)
• Germany's September Factory Orders 1.1% m/m (expected 0.9%; last -0.4%). October Services PMI 54.6 (expected 54.5; last 51.5)
• U.K.'s October Services PMI 52.3 (expected 51.1; last 50.1)
• France's September Industrial Production 0.8% m/m (expected 0.1%; last -0.9%). October Services PMI 48.0 (expected 47.1; last 48.5)
• Italy's October Services PMI 54.0 (expected 53.0; last 52.5). September Retail Sales -0.5% m/m (expected 0.2%; last -0.2%); 0.5% yr/yr (last 0.6%)
• Spain's October Services PMI 56.6 (expected 54.8; last 54.3)